Estonian butter shortage likely to last one month, followed by price rise
Butter production in Estonia has shrunk over the summer, reportedly due to a combination of several factors. The shortage may persist for about another month, but will likely be resolved with a rise in prices.
There is no indication that the situation is severe enough to merit state intervention, it is reported.
Over the past few weeks, many shoppers have noticed empty butter shelves in stores, something of a throwback to a former era.
Although some stores have already begun restocking their butter selections, it is still too early to celebrate, and the shortage remains.
Director of product purchase and selection at Prisma, Kaimo Niitaru, told "Aktuaalne kaamera": "We began experiencing difficulties with butter supply around the start of August, and as of Friday morning, we have been informed that these difficulties may continue through to the end of September."
"There are for this are several. First, there has been a shortage of cream on the market. Second, one of the largest dairy producers, Nordic Milk, has had its production line completely shut down. This interruption has been ongoing for quite some time. Since demand is also slightly on the up, other producers simply haven't been able to plug the gap with their own production," Niitaru went on.
Nordic Milk produces butter under the Tere and Farmi brands.
The company says that its production line disruption is not the cause of Estonia's overall butter shortage.
Ülo Kivine, Nordic Milk CEO, said: "The issue dates to a few weeks ago, and was very temporary."
"We relocated our butter production within our Põlva factory from one room to another, which caused some minor technical issues and a brief halt, but this is certainly not the reason behind the current shortage," Kivine went on.
"Estonian cows give a very high milk yield—something Estonian farmers are quite proud of, and we are as well. But at the same time during hot summery weather. they tend to produce milk with lower fat and protein content. Consequently, there is less fat in the milk, leading to a temporary shortage," he told "Aktuaalne kaamera."
Butter production hasn't fallen compared with last summer. However, exports have risen significantly this summer, which means that Estonian butter may simply have ended up on store shelves in other countries.
Once the crisis in Estonia gets resolved, it will likely lead to a price surge.
Kaimo Niitaru at Prisma said: "There has been various speculation about whether butter is more likely being sent abroad, or if the cream shortage is so severe that it can't meet regular production demands. As of Friday morning, we've been informed of upcoming price hikes, expected to be around 10-15 percent, towards the end of September."
Older Estonians will still remember the era of rationing and the great butter crisis of 1992, when then-Prime Minister Edgar Savisaar broke into a warehouse full of fresh butter which had been concealed from consumers.
However, nowadays butter storage places that can be heroically broken into are a thing of the past.
At the same time, the state has guaranteed strategic food reserves.
Simply seeing butter shortages in stores does not yet qualify as a crisis that the government needs to rush in to solve.
Toomas Unt, crisis manager at the Ministry of Regional and Rural Affairs, said: "A crisis is that situation where people's survival, well-being and possibly even lives are already at risk."
"The food supply chain has been disrupted, and stores are likely no longer able to provide enough food, or perhaps none at all," Unt went on.
"This is something we are seeing today in Ukraine, not across all of Ukraine, but in those areas affected by the fighting. It could be some type of blockade, which doesn't necessarily have to be military in nature, where we get cut off from the EU and external imports for a lengthy period of time," he went on.
"Reserves get distributed across different locations in Estonia. There isn't a single centralized large state warehouse, which is very sensible. But if we foresee that reserves need to be used, and in the case of food, this can be anticipated, the EVK will organize its use, including distribution," Unt added.
Despite this, it is reported that members of the public bear the responsibility to ensure that they have their own personal emergency supply. Even having two reserve packs of butter in the fridge could be a wise idea.
A previous butter shortage was reported in 2018.
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Editor: Andrew Whyte, Marko Tooming